Cost Basis 2010 Exclusion
With the stepped up cost basis change in 2010 for inherited assets, are you able to select which assets you want to use cost basis for and exclude others (with the $1.3 mill exclusion). I.e. if there is a large loss in one stock, can I use cost basis, but on other stocks choose to use stepped up basis?
Thanks.
Permalink Submitted by Alan Spross on Sun, 2010-02-21 04:39
The executor can cherry pick the assets on which to use the allowed amount of step up, limited to 1.3 m for other than spouses with an extra 3.0 m for a surviving spouse. Some assets can be left with the decedent’s cost basis and others could get whatever amount of added basis the executor chooses up to the DOD value. But if there are multiple beneficiaries, if this is not done equitably it could set up a real squabble. Any carryover losses remaining at death can be added to those amounts, instead of expiring as under the prior law.
If that happens, have them call their representative in Congress. 🙂
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